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2 min read | Updated on July 25, 2024, 15:38 IST
SUMMARY
The private life insurer reported a 36% jump in net profit at ₹519 crore for the April-June quarter (Q1FY25) compared to ₹381 crore in the corresponding period a year-ago. The insurer’s total income, including net premium income and income from investments, rose by 24% to ₹34,392 crore in the April-June quarter of FY25 against ₹27,691.96 crore in the first quarter of FY24.
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SBI Life shares jump up to 3% after strong growth in June quarter net profit
SBI Life shares rallied as much as 3.1% to hit an intraday high of ₹1,701 apiece on the NSE in morning trade. The stock later pared some gains to close 3.6% higher at ₹1,692 apiece on the NSE.
The private life insurer reported a 36% jump in net profit at ₹519 crore for the April-June quarter (Q1FY25) compared to ₹381 crore in the corresponding period a year ago.
The insurer’s total income, including net premium income and income from investments, rose by 24% to ₹34,392 crore in the first quarter of FY25 against ₹27,691.96 crore in the first quarter of FY24.
SBI Life, in a statement, said that its annualised premium equivalent (APE) stood at ₹36,400 crore, up 20% YoY. The Value of New Business (VoNB) for the June quarter increased to ₹970 crore, reflecting a growth rate of 12% while VNB margin stood at 26.8%.
The solvency ratio was lower at 2.01% against 2.15% in the preceding financial year.
The insurance firm’s New Business Premium rose by 13% to ₹7,030 crore in the June quarter against ₹6,210 crore in the year-ago period. Renewal premium rose by 16% year-on-year to ₹8,540 crore.
SBI Life stated it has maintained its leadership position in Individual Rated Premium of ₹3,220 crore with 22.4% private market share in Q1 FY 25.
The total cost ratio for the June quarter of FY25 was 10.5%, compared to 10.8% for the first quarter of FY24.
The insurer’s total assets under management (AUM) grew by 26% from ₹3,28,280 crore as of June 30, 2023, to ₹4,14,770 crore as of June 30, 2024, with a debt-equity mix of 62:38. Over 95% of the debt investments are in AAA and Sovereign instruments.
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